Corruption within STE: embezzlement of almost UAH 41 mln revealed

NABU and SAPO have discovered the former management of the State Foreign Trade Enterprise ”SpetsTechnoExport” (STE) embezzled in 2014-2015 and subsequently legalized more than USD 2.3 mln (UAH 40.8 mln). On Jan. 17, 2023, four participants in the corruption scheme were served with suspicion notices.

They are*:

• one of the STE heads (2005-2013, 2014-2015);
• the head of an STE department;
• two deputy heads of an STE department.

The actions of all participants fall under Part 5 Art. 191, Part 1 Art. 366 of the Criminal Code of Ukraine. Three of them - the STE head, the department head, and one of his deputies are also charged under Part 3 Art. 209 of the Criminal Code of Ukraine.

The investigation has established that in 2014, the STE head, an alleged organizer of the scheme, along with three of his subordinates embezzled the funds of the enterprise by paying a foreign company for the so-called agency services which have never been provided. NABU detectives found out that this company was under the control of an STE department deputy head, while her acquaintance was involved as a nominal director to mask the illegal nature of such actions. During just five months of 2015, STE illegally transferred more than USD 2.3 mln to this company for fake services.

The participants of the scheme engaged the same company as an intermediary from which STE purchased goods at inflated prices. Currently, the investigation has evidence of at least one such purchase, involving a 3.5 times uptick on the initial price of goods.

NABU and SAPO are delving into other episodes of possible corrupt activity within STE.

*positions as of the crime date

According to Article 62 of the Constitution of Ukraine, a person is considered non-guilty in the commission of a crime and cannot be subject to criminal punishment until he or she is found guilty by court.